The Strategist

Global demand for gold shows record fall

10/30/2020 - 02:59

In Q3 2020, demand for gold across the globe fell by 19% (to 892 tonnes) compared to the same period in 2019. According to a report by the World Gold Council, this number is a record low registered since 2009.
The demand has been staying at 2,97 thousand tonnes since the year began, which 10% less than in Q3 2019. Experts explain this fact by the negative impact of the coronavirus pandemic. Demand for jewellery rose by by 29 percent (in annual terms), while coins and bullions, on the other hand, grew by 49 percent. The Turkish market, where coins are the most common form of gold investmen, accounted for most of the growth.

Furthermore, through gold-backed exchange-traded funds (ETFs), investors bought 272.5 tonnes of gold in Q3. The market's overall stock of gold dropped by 3% relative to 2019. 

Since the year started, the precious metal’s price has risen by 22%, reaching $2000 per ounce and setting a historic high at $2089.2 in August. However, afterwards, the price began to drop, presently at about $1,800 per one ounce. Experts claim that if a Western coronavirus vaccine is registered, global gold prices could fall even further.